Putting out feelers
A reservation campaign allows companies to gauge investor interest without incurring significant expenses involved with an offering (e.g., legal and audit fees).
What it means to express interest and reserve shares in a reservation campaign
When you “reserve shares” in a potential offering, you are notifying a company that you are interested in becoming an investor if (and when) they decide to launch their fundraising campaign.
By doing so, you, along with other potential investors, are giving the business owners an idea of how much capital they might be able to raise (and if launching a campaign is a good idea).
The process is straightforward and involves little information from you, just your email address and contact information.
If the company files, you will be notified of the necessary steps to follow through with your investment (if you so choose).
The benefits of reservation campaigns for investors
Communicate with founders: Our discussion board allows potential investors to chat with founders directly. This helpful tool provides tremendous value to both parties by fostering an environment where investors can gain more clarity around prospective offerings.
-
Non-binding: Investors who reserve shares during a reservation campaign have little skin in the game. Much like an issuer, you are only at the “getting to know you” phase and are not contractually bound to exchange funds at this time.
Your reservation grants you a non-binding allocation for the first 7 days that the offering is live. During that time, you must confirm your investment. If you don’t confirm, your reservation will be cancelled to free up space for other investors.
Being early has its perks: Investors who reserve shares before the start of a campaign are essentially saving their spot in line. This is critical with offerings that garner a lot of volume and might sell out. Reserving gives you a priority allocation if the deal launches.
Playing a contributing role: Potential investors provide valuable feedback to issuers. By indicating interest, investors contribute to the community of other investors who believe in the company’s product or service. This also helps to spread the word and create a buzz behind a product or service.
How to identify if a company has a reservation campaign on Republic
Republic’s platform is designed to make it easy for you to discover companies that have a reservation campaign.
Here’s what to look for:
On our deals page, look for deal cards that say “accepting reservations” in the top left corner.
2. When you see a deal you are interested in, click on the card for more details.
3. To reserve your spot to invest once the offering goes live, click the blue “reserve” button.
4. You will then be directed to a page that will ask you to confirm your investment amount and payment info, along with the following disclosure:
Frequently asked questions
When will I be charged?
If and when an issuer can legally accept investment commitments, you will be prompted to confirm your investment at this time. Your selected payment method will be charged as soon as you click the “invest” button.
What if I want to edit my investment reservation?
You can increase or decrease your investment reservation up until the offering begins accepting investment commitments and you confirm your investment.
Can others see my investment reservation?
Your investment reservation is private by default. However, we encourage you to share with the community to show your support. Doing so helps issuers succeed.
Can I cancel if I change my mind?
You can cancel or decrease your non-binding investment reservation any time up to when the offering goes live. After you've confirmed your investment and the company has begun taking investment commitments, you may cancel the arrangement before the official cancellation period set by regulations. After that, your investment will be finalized, and you can no longer cancel.
Please note: Rolling Closes may affect the deadline to cancel.
Can I participate in my country?
Republic’s platform allows anyone from anywhere to indicate interest in reservation campaign offerings, but each fundraising company may choose to limit who can participate. Learn more